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Social Welfare Program in the Former State of Swat(The Paradise Lost)

Hafiz M. Yasin

AbstractThe Pakistanis in general and residents of Khyber Pakhtunkhwa in particular are worried about the situation that has developed in Swat and other parts of Malakand division over the past few months. The lives, honour and properties of the inhabitants remained at risk and the innocent people of this region have turned refugees in their own homeland. The valley is now blazing; its educational and health centers blasted, its tourism and economy destroyed and its routes are no more safe for traveling. Swat was claimed to be a welfare state prior to its merger in1969. The State was famous for its prosperity and good governance. The literacy rate was much higher and health facilities far better than other parts of Pakistan. The driving force behind the success was obviously the devotion and efficiency of the rulers.This presentation draws upon a research report completed recently at IIIE, the International Islamic University Islamabad on the Fiscal System of the former State of Swat. A general public survey was conducted in three districts (Swat, Buner and Shangla) during early 2008 by approaching the common people and those who remained in the administration of the system some forty years back. Efforts were made to retrieve the old official record besides interviewing the prominent personalities. The present study gives an outline of the fiscal system and its nexus with the social sector development in Swat. The study focuses on the factors responsible for social security and alleviation of abject poverty, which in turn led to a general confidence of masses on the system, despite autocracy in the State.

Keywords: Social Welfare, Swat, Pakistan

Introduction

The Pakistanis in general and residents of Khyber Pakhtunkhwa in

particular are worried about the situation that has developed in Swat and

Dr. Hafiz M. Yasin, Associate Professor, International Institute of Islamic Economics, International Islamic University Islamabad.

Social Welfare Program in the Former State of Swat Hafiz Yasin

The Dialogue Volume IV Number 3328

other parts of Malakand division over the past few months. The lives,

honour and properties of the inhabitants remained at risk and the

innocent people of this region have turned refugees in their own

homeland. A new terminology has been coined for our brothers and

sisters, namely the IDP’s (internally displaced people), probably to

reduce their sufferings psychologically. The valley that was famous for

peace and tranquility, sweet rhythms of streams and cuckoo, natural

beauty with charming scenes and snowy peaks, orchards laden with fruits

and thick forests, busy shopping centers and crowded motels, and above

all, for its very polite people and hospitable friends, all this looks like a

dream. The valley is now blazing; its educational and health centers

blasted, its tourism and economy destroyed and its routes are no more

safe for traveling. How long will it take for rehabilitation of its frustrated

people; is not known.

Swat was known as the Switzerland of Pakistan. Some forty

years back, the State was famous for its prosperity and good governance.

It could maintain an efficient judiciary and effective law enforcement

agencies. The literacy rate was much higher and health facilities better

when compared to other Frontier States and even the settled areas of

Pakistan. Swat was claimed to be a welfare state prior to its merger

in1969. Certain structures of that glorious time can still be seen in the

valley. The driving force behind the success was the strength of the State

and efficiency of the rulers.

This presentation draws upon a research report completed

recently at the IIIE, International Islamic University Islamabad on the

Fiscal System of the former State of Swat. To achieve the objective, we

not only retrieved the old official record as far as possible but also

approached the people of Swat, who were the eye witnesses of the



system. A general public survey was conducted in three districts (Swat,

Buner and Shangla), which comprised the State before merger. We

collected the necessary information through properly designed

questionnaires from the common people as well as those who were

practically involved in the administrative system. Special care was taken

that the respondents ought to be in the age of 50/60 years and above. The

survey was initiated in the first quarter of 2008 when the law and order

conditions had not yet aggravated. In addition, we consulted the available

literature and also interviewed the prominent individuals, including H.E.

Miangul Aurangzeb, the heir prince (Wali-Ahad) of Swat, the former

MNA and Governor Balochistan. Here we present an outline of the fiscal

system of the State and its nexus with the social welfare program.

However, before embarking on the main theme, it seems appropriate to

refresh memory of the audience with a brief historical sketch of Swat.

Historical Sketch

The old name of this area was Udyana in Sanskirt and it remained a

centre of Gangdhara (Buddhist) civilization during the reins of Ashoka

and Kanishk, the ruins of which can still be seen through length and

breadth of the valley. Alexander the Great is said to have crossed the

valley of Swat around 326 B.C. while traveling from Kabul to India and

after conquering the central Asia and Iran. The famous Chinese pilgrim

and tourist, Hiuen Tsiang, is said to have visited Swat in about 630 A.D.

when Buddhism was on a decline. Islam as a religion entered this area

with the invasions of Sultan Mehmood Ghaznavi on India in the 11th

century. Many Pushto speaking warriors were in company of Mehmood,

who settled in Swat after the conquest and were later on called ‘Swatis’.

These people were good architects and also good agriculturists. They

constructed the irrigation channels and developed the arid lands into



cultivable terraces. However, they were driven out eastwards to Hazara

valley by the Yousafzai during 14th century A.D. Their current

generations are still known as Swatis and they speak Pushto1.

The Yousafzai inhabited Kabul along with other Pukhtoon tribes.

However, due to clashes with the Mughal ruler, Mirza Alagh Beg, they

migrated to Peshawar by the end of 15th century (1485-90) under the

guidance of their leaders Malik Ahmad and Sheikh Malli2. After

expelling Della Zauk from this valley, the tribe Muhammad Zai settled in

Hashtnagar- Charsadda, another Khalil-Mohmand in Peshawar valley

and the largest tribe Yousafzai occupied Mardan and Swabi. Then they

invaded Swat, Buner, Dir and Bajaur valleys and occupied these vast

areas by pushing the native population eastwards to Hazara. Sheikh Malli

divided the vast occupied lands among various sub-tribes with their

mutual consent and recorded the details of ownership in a file or book

(called Daftar or Dautar)3.

However, the enmity of these Pukhtoon tribes with the Mughals

continued for a long time, except with a short break when the emperor

Zahiruddin Babur entered into a peace treaty with them in 1516 A.D.

before he could attack India. Anyhow, they took their long outstanding

revenge by fighting and defeating Mughals in India under the command

of Sher Shah Suri. They also defeated the Mughal forces at Buner in

1586, but later they surrendered peacefully to emperor Jaluluddin Akbar

under the influence of saint Sayyid Ali Shah Tirmizi (known as Pir

Baba) and his disciple Abdur Rashid (known as Akhund Darveza). This

later was a learned personality and the author of some books4. The next

two emperors, Jehangir and Shah Jehan, largely ignored Swat. However,

during the time of Aurangzeb Alamgir, the people of Swat remained



somehow subjugated since he was considered to be a pious ruler and

strict follower of Shariah.

The Mughal dynasty started degeneration after Alamgir and

many independent states appeared here and there in India. Swat also

remained independent but without any formal government. It was Ahmad

Shah Abdali who occupied Kabul in 1748 A.D. and tried hard to reunite

Pukhtoon tribes dispersed here and there. He attacked India and defeated

the Marhatta forces at Panipat in 1761 but made a strategic blunder

(according to Muslim historian) by returning back to Kabul and not

staying at Delhi to strengthen his position and lay the foundation of a

new Muslim dynasty like his predecessors. Meanwhile, the British forces

occupied most of the southern and central India while Raja Ranjit Singh

established his empire in Punjab. He occupied Kashmir as well as

Peshawar in 1821 and blocked the route to Kabul. This weakened the

strategic position of Yousafzais and they accompanied Sayyid Ahmed of

Braili in his struggle (Jehad) against the Sikha Shahi. With the

martyrdom of Sayyid Ahmed at Balakot in 1831 A.D. the grand

movement for Islamic revival came to an end. The Sikh rule also ended

when the British forces occupied Peshawar in 1849. All the settled areas

came under their control with the exception of the western tribal belt

(Bajaur, Mohmand, Khyber, Aurakzai, north & south Waziristan

agencies) and the northern areas of Swat, Dir and Chitral states. A

political agent at Malakand was appointed to look after the affairs of

these autonomous states.

The Genesis of Swat State

There was no concept of a regular State or rule of law since the times

Yousafzais had occupied Swat. The people followed a nomadic way of

life and tribal traditions. The first attempt was made in the year 1849



when the saint Abdul Ghafoor (Akhund Sahib of Swat) convened a grand

convocation (Jarga) of the elderly people of Swat, Buner, Dir and Bajaur

to discuss the imperial designs of the British. It was unanimously decided

to establish a State based on the injunctions of Shariah that should

protect the land from alien domination. A renowned figure, Sayyid

Abdul Akbar Shah5 was invited from Sathana (or Astana) and appointed

as the ruler (Amir Shariat). This government continued for 6/7 years and

lasted in 1856 with the death of the ruler. After depressing the war for

independence 1857 (which they called rebellion-Ghadar), the British

rulers tried to capture Swat and Buner in 1863. The tribesmen resisted

strongly through guerrilla war and compelled the invaders to retreat. This

is known as the battle of Ambela (expedition- in British terminology), in

which the Akhund Sahib of Swat is reported to have taken part despite his

old age. The British rulers declared Swat and Dir as a tribal areas

thereafter and did not try again to subdue this belt. From 1857 onwards,

there was anarchy again in Swat, mutual conflicts, conspiracies and

tussle for power among the Khans of different tribes. The people were

fed up of disputes, killings and insecurity. A state-like structure had been

formed in Dir around 1880, which was further strengthened in 1895 with

the assistance of British forces after they had defeated the Khan of

Bajaur (Umar-a-Khan). The Nawab of Dir often used to invade Swat and

wanted to annex the area to his domain. To protect their land, the elderly

people of Swat convened a grand Jarga in 1915 and called upon Sayyid

Abdul Jabbar Shah to take over as the Wali of Swat6. He was a scholar

and a good orator and could swiftly set up some kind of state

administration. However, the things developed against him on religious

grounds and he was told to leave the State. So the big Jarga of all the

tribes gathered again at Kabbal in 1917. They tied the turban to Miangul



Abdul Wadood Khan and appointed him as the ruler of Swat (later

known as Badshah Sahib). He was the grandson of Abdul Ghafoor

(Sahib of Swat). 7

The Badshah Sahib after taking over in 1917 struggled hard to

consolidate the State and to introduce a number of reforms. He was quite

a genius, mobile and a man of strong determination. During his long rule

of 32 years, he expanded the boundaries of State to Buner and Kohistan,

built a number of strongholds (fortresses), recruited regular armies,

repelled the invasions from Dir and Umb, ensured internal security and

subdued most of the opponents. He devised a reliable structure of

revenue generation, the Ushr system that could fetch sufficient funds to

run the State. In particular, he worked very hard for a permanent

settlement of land ownership among the sub-tribes that led to

transformation of the nomadic tribal structure into a modern society and

opened the doors to prosperity and development. Badshah Sahib took

active part in Pakistan movement and contributed Rs. 110,000 to Muslim

League for the expenses of referendum in Khyber Pakhtunkhwa. He

signed accession to Pakistan in 1947 and sent his troops to join Pakistani

forces in Kashmir war of 1948.

The Badshah Sahib handed over charge to his elder son on 12th

December 1949. H.E. Miangul Abdul Haq Jehanzeb (later known as the

Wali Sahib) was a very efficient and capable man. He was adequately

educated - a graduate of Islamia College Peshawar (1926) and proved

himself to be an efficient administrator. The State developed a lot during

his rule of 20 years. He focused on the infrastructure development; the

construction of roads and bridges, schools and hospitals and means of

communication. The State provided health and education facilities to the

common masses free of cost. The law and order was exemplary and the



judicial system was very effective, which was a blend of traditional

codes and the Islamic norms compatible with the aspirations of the

people. Keeping aside the political opposition, which is always there for

the authorities in power, the era of Wali Sahib was known for peace and

prosperity. The governance was exemplary and the rate of corruption

was minimal. The ruler kept very good relations with Pakistan and

provided financial and material support in times of emergency,

particularly during the Pak-Indian war of 1965. The State was annexed to

Pakistan but it enjoyed internal autonomy till its merger in 1969.

The Fiscal System of Swat: An Outline

The State of Swat was very young and short lived when compared to

other princely states of the subcontinent. The administrative set up

resembled closely to that of the British India. The State was

administratively divided into various regions/areas called Hakimi’s8.and

further divided into Tehsils. The area administrator was called Hakim

who was assisted by Tehsildars of sub-areas. Both Hakim and Tehsildar

were collectively called as Amileen and they were directly accountable to

the ruler. They enjoyed vast administrative, judicial and financial

powers9. They could hear and decide cases according to the precedence

(Riwaj)10. They were the executive, the judicial magistrates as well

collectors of State revenues. The Finance Minister (Wazir-e-Mal) was the

overall head of the fiscal (revenue) system. However, the expenditure

side was controlled by the treasury officer (Mohtamim Khazana) who

was directly accountable to the ruler. Thus the administrative hierarchy

comprised of the Tehsildar at the bottom and the ruler at the top.



Sources of Revenues

No state or a government can exist or perform without reliable sources of

revenue. Whatever may be the nomenclature, the ‘tax’ constitutes the

central part of the revenues. Imposition of tax is considered as the

constitutional right of a state and its payment as the obligation of the

citizen. There is no difference on this point among the economists and

social philosophers. Of course, the ways revenues are collected and the

manners scarce resources are utilized by the state have always been

controversial. The imposition of tax and payment by the public is

synonymous to prevalence of writ of the government and subjugation of

the people to its authority. The State of Swat was very young and short

lived, when compared to other princely states of the subcontinent, but it

succeeded in devising an efficient structure and successful

implementation of tax collection within a few years of its gaining the

power. The major sources of revenue comprised Ushr on agricultural

produce, Octrois (excise duty on exports and imports) collected at the

entry points, royalties from forests and minerals, license fees of arms and

vehicles (called road tax), fines and stamp duties and some kind of

income and property taxes (called Hasiyyat tax). The explanation given

by Wali Sahib himself in this regards is worth noting:

“My father got the idea for the auction method from Dir (State).

It formed the corner stone of State economy, and it was very just and

very simple and inexpensive to administer. Another advantage is that the

prices of grain grow higher every year. Though we continued to pay our

army in kind, there was always some net surplus left, and the value of

that surplus has risen every year. That has been one source of income for

the State.



The second source of income that my father developed was the

forest. The vast forest of Upper Swat and Kohistan were not accessible to

any regular exploitation…. When the State was organized, my father said

that the forests are State property; and whatever the income from it will

be, one tenth will go to the local people, and nine tenths to the State.

The third source of income he established was the octroi, the

export and import dues he imposed on goods crossing our boundaries at

Landaki. We could not call it customs duty because we were not

independent; but it functioned like custom duties11.

As evident from above, the primary source of revenues in Swat

was the tax on agricultural produce and called Ushr (due to its rate i.e.

one tenth). It was collected during the harvest season by auctioning the

specified areas through open bids. The area administrator (Amil Alaqa)

had to conduct the process of open bidding. The contractor (Ijaragar)

was obliged to collect Ushr of cereals in kind and that of gardens and

orchards in cash from the area of his jurisdiction at the specified rates.

He had to deposit the agreed upon amount/ quantity in the stores built for

the purpose within three months of the completion of harvest seasons.

The remainder or the surplus over and above the specified amount was

obviously the profit of the contractor. The defaulters were to be dealt

with iron hand. Usually, the contractors were given further extension in

genuine cases, if they failed to deposit the agreed upon quantity or its

market value within the time limit. The rulers were rational and generous

enough to wave off part of the liability in case of natural calamities and

loss to crops. However, the chronic defaulters could be fined, beaten,

jailed or their properties confiscated in severe cases. The rates of Ushr

was not strictly one tenth of the produce, rather it varied from time to

time and according to nature of the commodities. It was not possible for



the contractor to exploit the farmers and to charge some thing in excess

of the stipulated rate, obviously for the fear of complaints to be filed

against him with Wali Sahib.

Expenditure of the State

The main heads of non-development expenditure in Swat comprised of

salaries of State servants, particularly police and army, provision of

social services like education and health facilities to the general masses

free of cost, provision of judiciary through Qazi courts, communication

and postal services etc. The remaining resources were to be spent on the

provision of the infrastructure, construction of roads and bridges, schools

and college, dispensaries and hospitals in all parts of the valley. The

expenditure system was simple and cost friendly. The low paid

employees of police and army used to draw their remuneration in kind

from the collected cereals. The remainder of Ushur used to be

transported to the capital or auctioned in the local market and the amount

credited to the treasury.

The disposal of revenues depended completely on the sweet will

of the rulers and no one could dare to question about it. It is strange but

comfortable to note that no blame of financial corruption was recorded

against the ruling family even after the merger when they were no more

in power. A fraction of the collected revenues was allocated for payment

of ‘allowances‘ (called Muawajibat) to the influential people, heads of

clans and tribes, religious factor to win their hearts and keep them

tamed12. Although, there was no direct share for the local poor and needy

people in the Ushr collected from different areas, the benefits were

passed on to the common masses including the poor indirectly via

provision of free education and medical facilities. However, the poor and

needy could approach Wali Sahib for financial assistance on specific



occasions like marriages of their children, sickness and deaths of the

earning hands, and their requests were often honored. Moreover, the

brilliant students were provided with adequate scholarships and stipends

for higher education within the State and abroad.

Budget of the State

The State policy behind the whole fiscal system was simplicity and self

reliance. Of course, the State received some occasional funding from the

British rulers as well as from Govt. of Pakistan for specified purposes,

but the major reliance was on its own resources and efforts were made to

keep the budget balanced. The revenues of the State were usually

sufficient to finance its expenses and there used to be some savings in the

treasury. The Wali Sahib comments on sources of the State income as

under:

“The monetized income of the State rose very satisfactorily. When I became ruler after my father, the total monetary income was 5 million Rupees per annum. It ended up at 20 million – with no extra taxes, and no income tax. The Octroi duty alone, which in the early days started at 14,000 Rupees, had risen to 2 million Rupees when my State ended.”

The following statement may reflect the budgetary position overtime,

although there was no precedence of preparing formal budgets. In fact,

the expenditure followed revenues and not vice versa.

Table- 1: Budgetary Position of Swat State Overtime (Rs)

Year Income Expenditure Balance (Saving)1949-50 6,000,000 6,000,000 001955-56 6,400,000 6,125,000 275,0001961-62 11,473,000 11,300,000 173,0001966-67 16,010,000 15,740,000 270,000

Source: Sultan-i-Rome (2008) pp 195 on the authority of Sirajuddin Swati (1970).



As compared to other Frontier States, Swat was quite rich and

prosperous. The rulers utilized the wealth for development of the

infrastructure and welfare of the society. We discuss this feature in the

next section. Although the neighboring Dir State was equally rich in

resources, particularly in natural forests and area under cultivation, but

the rulers did not exploit and/or utilize these resources properly and the

people were intentionally kept poor and ignorant.

It seems appropriate at this stage to present the main features of

the State budget for the year 1966-67 and 1967-68. It is evident from the

table that around 70 percent of the State revenues comprised taxes and

Ushur and 40 percent were other non-tax sources. The major part of

Ushur was contributed by the agricultural sector and the major part of

non-tax revenues comprised royalties from forests and minerals. On the

expenditure side, we notice that around 67 percent of the budget was

allocated to current spending, about 30 percent of the resources were

allocated to development projects and a minor fraction comprised

transfer payments13. The budgets were kept balanced and there were

always some surplus in the treasury to finance deficits in the future, if

any, as we observe in case of the revised budget for 1966-67.

The Yousafzai State of Swat

Table- 2: Summary of Budget Estimates for 1966-67 and 1967-68 (Rs. Lakhs)Heads of IncomeAnd Expenditure

Budget Estimates 1966-67

Revised Estimates1966-67


Income 160.02 (100) 175.29 (100) 174.09 (100)Tax Revenues 94.02 (58.75) 105.97 (60.45) 103.11 (59.23)Non-Tax Revenues 66.00 (41.25) 69.32 (39.54) 70.98 (40.77)Expenditure 157.39 (100) 198.08 (100) 173.33 (100)Current Expenditure

106.75 (67.83) 118.87 (60.01) 116.36 (67.13)



Development Expenditure

45.00 (28.59)

71.98 (36.34) 50.00 (28.84)

Transfers 5.64 (03.58) 7.23 (03.65) 6.97 (04.02)Saving/Deficit (+/-)

+ 2.63 - 22.79 + 0.76

Financing: Reserve FundNet deficit

- 15.00 7.79

-

Source: Derived from the record maintained at the Tribal Office, Directorate of Libraries and Archives, Govt. of Khyber Pakhtunkhwa, Peshawar.

It might be interesting to compare the budget estimates of Swat with the

corresponding figures of the then East and West Pakistan provinces.

Only the revenue budgets of Pakistan for the same periods are

reproduced in summary form to facilitate comparison. The capital

budgets of both the provinces as well as the central government

comprised internal and external borrowing besides the meager surplus on

revenue account to finance the ADP’s. It is important to note that the size

of Swat economy was roughly equal to that of a medium sized district of

West Pakistan. As such, only the percent fractions should facilitate

comparison rather than the actual size.

Government of Pakistan

Table- 3: Summary of Revenue Budgets for 1966-67 and 1967-68 (Rs. Lakhs)

Source: Derived from Pakistan Economic Survey 1970-71.



The above schedule reveals that total revenues of West Pakistan

comprised the Principal Receipts (tax revenues) and Others (non-tax

revenues), which comprised 58-59 percent and 41-42 percent of the total

revenues respectively. In case of East Pakistan, the sources of revenues

differed widely, probably due to more grants made available from the

central government. The tax revenues comprised 75 percent and non-tax

portion was 25 percent in 1966-67 whereas these proportions

respectively were 63 percent and 36 percent for the year 1967-68.

Looking at the expenditure side of the budgets, the Govt. of East

Pakistan utilized 72-73 percent of the resources to finance current

spending in the two years and allocated 26-27 percent for development

purposes. The case of West Pakistan was somewhat different. It allocated

vast fraction of revenues (83 percent) to current (non-developmental)

expenditure during 1966-67, probably due to the aftermaths of the 1965

war with India, and could allocate only 17 percent for the development

purposes. The proportions however changed next year. The fraction of

current expenditure fell to 77 percent of the budget during 1967-68 and

that of development expenditure rose up to 23 percent out of the revenue

budget14.

The position of Swat was much stronger on the development side

than both East and West Pakistan during the two years under reference.

The reason is obvious. Swat had no significant liability of defense after

its accession to Pakistan in 1947. It could therefore allocate freely for the

social sector development. In contrast, the lion’s share of the domestic

resources in case of Pakistan was absorbed by defense (and still this

practice continues). Consequently, the development program had to be

financed through foreign aid and domestic borrowing along with a small



saving on the revenue account. Anyhow, the above comparison sheds

sufficient light on the role of Wali Sahib in the development of Swat.

In a nutshell, one may conclude that the fiscal system of the

State was simple as well as comprehensive. In particular, the revenue

collection mechanism was efficient and well organized with minimum

administrative cost and chances of evasion or corruption. No doubt that

the driving force behind the success was the strict administration and

close vigilance of the ruler himself. The disposal of available resources

depended entirely on the sanction of the ruler, the Wali Sahib. The

advisory council15 (Shura) or the cabinet (Majlis Wuzara) was not

supposed to give approval of the expenditures. Members of these bodies

could simply indicate or recommend various projects for the kind perusal

of the ruler.

The Social Sector Development in Swat

The people of Swat were ignorant and followed a tribal and nomadic life.

The founder ruler (Badshah Sahib) introduced so many reforms after he

took over in 1917. He wanted that people should adopt a civilized living.

For this purpose, he ordered for a permanent settlement of lands in the

early 1930’s to disband the nomadic style of living. This formidable but

very laborious plan opened the path of development and prosperity for

the people of Swat. In particular, the agriculture sector began to flourish

rapidly. Swat became a place of peace and progress with beautiful

buildings, farms and homes16.

Expansion of Modern Education

Although Badshah Sahib had no formal education, yet he was very fond

of educating not only his own children but also the children of his people

at large. The first primary School was established in Saidu Sharif in 1922



but it was hard to find students. For this purpose, he personally motivated

people to get their children admitted in the school and offered them with

incentives in the form of scholarships. This strategy was fruitful and

schools could be opened at prominent places like Barikot, Charbagh,

Chakesar, Daggar and Pacha Kaley within five years. An Anglo-

vernacular middle school at Saidu Sharif was established in 1927. Its

total expenditure per annum was Rs. 18000/-. This school was later

named after the ruler as Wadudia School, which was upgraded to high

school level in 1940. An institution for religious education, Dar-ul-

Uloom Swat was also established at Gulkada near Saidu Sharif in 1943

and its branch opened at Charbagh in 1945. According to different

reports, a total of twenty five schools were opened during the era of

Badshah Sahib.

The contributions of Wali Sahib towards expansion of education

in Swat are commendable, which are not paralleled by any other ruler in

the near past, within Pakistan or the sub-continent. He was himself

highly educated (with reference to the facilities available in 1920’s) and

he took keen interest in providing modern education at the door steps of

the citizen. According to his own statement, the literacy rate in Swat was

20 percent by 1969; this progress (from barely zero to 20 percent) was

achieved in about 40 years (1922 to 1969) all by their own efforts17.

An Intermediate College for boys was opened at Saidu Sharif in

195218, which provided formal education in science and humanities.

Later on it was up-graded to degree level in 1954 and named after its

founder as the Jehanzeb College. Presently, it is a post-graduate college

with at least 6 departments. The college granted admission to both Swati

and non-Swati students. The two-storey building was complete by 1951.

Subsequently, the Govt. of Pakistan granted a sum of Rs. one lakh under



the ‘social uplift scheme’ for the construction of science laboratory in the

college. A privately managed school – The Christian Mission School’

was opened at Sangotha in early 1950’s with the financial support of

Wali Sahib. Likewise, the first college for girls (at Intermediate level)

was opened in 1962. Approval for the establishment of two more college,

one each at Daggar (Buner) and Matta (Upper Swat) was granted in 1967

and construction of college buildings completed by 1969, however the

colleges were formally opened after the merger. There was progress on

the female education side as well. The expansion of education facilities

during the reign of Wali Sahib can be judged from the following

schedule19.

Table 4: Expansion of Education facilities during Wali Sahib period (1949-69)Male →Year ↓

Primary Schools

Lower middleSchools

MiddleSchools

HighSchools Colleges

1949 12 9 3 1 -1959 53 19 25 9 11969 164 14 33 37 1 + 2* = 3Female(1969)

1 - 1 1 1

* Two colleges sanctioned and building completed but formally opened after the merger.

The Wali Sahib not only endeavored for expansion of modern education

in the valley of Swat but was also vigilant on the standards of education.

For this objective, the talented students were awarded scholarships

within the State and abroad and the teachers were provided with

necessary incentives. According to Wali Sahib:

“The Education Department of the Frontier was responsible for exams in our schools and college; and I made special arrangements to encourage sound work and high standards. At the annual examinations, if the pupils of a certain teacher averaged 90% or above, then he was



given one month’s extra salary; whereas whoever had an average of 30% or a poor result in his class, then one of his normal salary increments would be stopped. In that way, I ensured that there was always a little reward, and a little punishment, for all the teachers in the system. As a result, they all worked to the best of their ability20 ”.

By virtue of his esteemed services to the humanity in general and to his

country in the field of education in particular, the University of

Peshawar, in its 15th convocation held on 24th of December 1965,

conferred upon him (Major General Miangul Jehanzeb, H.Pk. H.Q.A.

CIE, Ruler of Swat) the degree of Doctor of Law (Honoris Causa)21.

According to Wali Sahib, he was the first Pakistani ever to be honored

with this kind of degree.

Provision of Health Services

There was no hospital (or even a dispensary) in Swat when the founder

ruler (Badshah Sahib) took over in 1917. People used to consult local

Hakeems (Unani) for their ailments. A general purpose, small scale

hospital ‘the Lady Minto Swat Hospital’ was established by the British

rulers in 1895 at Malakand, which had to serve all the agencies and

princely State in northern parts of the Frontier Province. The first regular

dispensary was opened by Badshah Sahib at Saidu Sharif in 1927. It was

upgraded in 1929 to be called as the State Civil Dispensary and affiliated

to the Provincial Medical Department, which deputed a surgeon for duty.

By 1947, there were three hospitals, one each at Saidu and Daggar for

male and one hospital at Saidu for female. These hospitals had a capacity

of 140 beds.

During the rein of Wali Sahib, special attention was paid to the

provision of health services. The surgeon of Saidu Hospital was in-

charge of the Health Department under the direct supervision of the ruler



himself. By 1958, the number of hospitals and dispensaries increased

significantly. During another time span of 10 years, the number of

dispensaries increased to 45 and that of hospitals to 16 with a capacity of

611 beds. In addition, there were two mobile dispensaries, a dental clinic

and a maternity home at Saidu Sharif as well as two veterinary hospitals.

The rate of progress can be judged from the following schedule22.

Table 5: Expansion of Health Services during Wali Sahib period (1949-69)Male →Year ↓

Dispensaries Hospitals

Capacity Veterinary Misc. Institutions

1947 1 3 140 beds - -1958 17 6 240 1 2 mobile

dispensaries1968 45 16 611 2 1 dental clinicFemale(1968)

- 1 40 - 1 Red crossmaternity

The local practice of medicine (Unani) also continued side by side, but it

was also regulated by the State. Only those Hakims were allowed to

practice who were certified by the Tibya Colleges, Delhi or Lahore.

Likewise, the sale of English medicine was restricted to those having a

license of certified ‘chemist and druggist’ from the Health Department.

Infrastructure Development

Needless to mention that the infrastructure serves as the backbone of an

economy and it has strong nexus with physical as well social

development. The rulers of Swat were well aware of this fact and they

paid particular attention to the development of roads and communication

system. Communications in the pre-State era were rudimentary and

people followed the foot-paths by the sides of canals and water channels,

since the area is mountainous. The founder ruler (Badshah Sahib)

remarks:



“I was convinced that no government could run unless each area was easily accessible. Thus, linking of all major towns of the State with Saidu Sharif (the capital) was, therefore, of prime importance. So I set about making roads through out the length and breadth of my territory. It was an enormous task and could not be accomplished soon”23.

The first road was built from Mangora to Landakey. The work started in

1923 and the road was further extended to Malakand in 1924. The road

from Mangora along the river bank up 36 miles was completed in 1927.

A wooden bridge on the river near Kanju was completed in 1928 to

communicate upper Swat with the capital. By the end of 1949, there was

a chain of three hundred and fifty miles of un-metalled roads connecting

Mangora with all the major towns of the State as well as with the down

country (Mardan, Peshawar). James W. Spain records in the 1950’s the

excellent system of communications and transport facilities in the State,

which included1500 miles of telephone lines, and 375 miles all-weather

roads24.

Table 6: Progress on Communication System over time

Year Un-metalledRoads

MetalledRoads

Total Length Roads (Miles)

Bridges (Number)

Tel. (Number)Exchange/Connections

1947 350 - 350 120 05/1601957 385 15 400 240 10/2921968 484 116 600 500 17/597

On the accession of Miangul Jehanzeb as the Wali of Swat, roads

and other means of communications were among his top priorities. He

established a separate department for the purpose. The reserve army

personnel were often engaged in the task to help in the construction

work. He not only expanded the network of roads started by his father

but also tried to maintain them properly and to convert them into

metalled ones25. The quality of roads was excellent. It was generally said



(as a proverb or piece of fun) that when your vehicle stops jumping and

begins to run smoothly, it is sufficient indication that you have entered

the premises of Swat.

In order to appreciate the sincerity of Wali Sahib to the cause of

social sector development, it is advisable to refer back to the budget

estimates of Swat State for the years 1966-67 and 1967-68 cited above.

The allocation for Education and Health services (within the current

expenditure) was about 27 percent of the total budget for both the years.

Likewise, the allocation for the construction of Schools, Colleges and

Hospitals (within the development expenditure) was around 15-16

percent and that for the construction of roads and bridges was around 13-

14 percent of the total budget of the years concerned.

Concluding Remarks

The prevalence of widespread poverty in different parts of the world is

the most serious challenge. The intensity of the poverty and inequality

problem is more severe in the developing countries in general, and

Pakistan is no exception. The financial position of the economy is not

stable. Pakistan is facing problem of twin deficits from the very

beginning. Although, the taxable capacity exists, but due to evasion

practices on part of the payers and corruption in the collection

machinery, the tax effort is very weak. The revenues collected from all

sources have not been sufficient enough even to finance the current

expenditures. Thus, nothing is left behind to support the development

budget. The governments (whether authoritative or democratic, past or

present) have adopted an outwards-looking policy for aid and

development grants. Due to increasing investment needs, the country has

generally faced the problem of a structural deficit on the current account

of its foreign transactions. This situation has led to accumulation of large



stacks debts over the past half a century. The debt servicing is now

posing serious problems and adversely affecting the sovereignty of the

nation.

In contrast to the position in Pakistan, the State of Swat was

quite prosperous and self sufficient in resources and could afford

considerable expenditures on development programs without any serious

problems of deficits or resorting to borrowing. The revenue system was

simple and comprehensive. The expenditure side was totally in the grips

of the rulers. The State had to spend on the maintenance of law and

order, provision of speedy justice and the necessary infrastructure.

Special attention was paid to education and health services. The ruler

himself used to visit the important sights where construction work was

going on. The economy was strong and constantly growing. There used

to be some surplus in the treasury ever ready for emergency needs.

Around 40 percent of the State resources were normally allocated to

Public Works. The policy of self reliance was generally followed and the

State had no debt liabilities at the time of merger; rather a surplus was

there in the treasury, which was handed over to Pakistani authorities.

Although there was no direct share of the poor and needy in the Ushr of

the area concerned, however, they could apply for financial assistance to

Wali Sahib on certain occasions like ailments, calamities, marriages and

deaths and their requests were often accepted. The general masses could

benefit from the system indirectly via free education and health facilities

and provision of justice, which was costless and speedy. The fulfillment

of these basic needs had a positive impact on the standard of living of

people. They could find employment easily within the State and

elsewhere or they could invest in business without frustration. The

impact can be judged from the fact that civil servants of the State



occupied most of the senior positions in the provincial cadres soon after

the merger in 1969.

Swat was known to be a modern, prosperous and peaceful land

with beautiful landscapes excellent roads and comfortable restaurants.

After its merger with Pakistan in 1969 under the Martial Law order, all

the powers of the ruler were delegated to Commissioner Malakand

Division26, to comprise the former states of Swat, Dir and Chitral, where

each state was declared as a district. The three sub-divisions of Swat,

Buner and Shangla were later upgraded as districts. The action of merger

itself was undemocratic since there was no parliament and the

government did not bother to seek the opinion of the general public

through some kind of plebiscite or referendum. It has been discussed

widely at different forums but two important questions remain to be

answered. The accession of Swat and other princely States with Pakistan

in 1947 was based on an agreement reached to between the States

concerned and government of Pakistan, as laid down in the Instrument of

Accession, Govt. of India Act 1935. The internal sovereignty of these

States was recognized in the subsequent constitutions of 1956 and 1962.

Same was the case with the tribal belt (agencies) of Khyber

Pakhtunkhwa. The question arises as to why this autonomous status was

declared as null and void when the Frontier States in general, and Swat in

particular, were running smoothly and not posing any problem for the

government of Pakistan27. The second question is important from an

economic point of view. All the regulations prevailing in Swat were

replaced by the Pakistan Penal Code with the merger. However, the

associated decision of abolishing the well-functioning Ushr system can

not be rationalized. All the Frontier States had their own systems of

revenues and expenditure that should have been kept in tact and



strengthened further. In contrast, whole of the Malakand Division was

declared as a tax-free zone. Consequently, the government lost an

adequate and certain source of revenues and the extra burden was added

to the exchequer. This was surely a wrong strategy. The taxation system

of Pakistan could not be extended to those areas even after a lapse of 40

years. Naturally, it is very difficult to impose levies afresh once the

people are freed from payment. Further, the people didn’t accept the

costly and time consuming judiciary process implemented in Malakand

and there were resentments of and on. People demanded restoration of

the old customs and traditions, which they call Shariat. The governments

have always faced difficulties in dealing with these issues.

Tranquility and peace is a pre-condition for the growth of an

economy and prosperity of its people. To this end, it is necessary to

provide justice to the people and to address their grievances. The State of

Swat was famous for good governance and exemplary law and order

conditions. This had brought the rate of crime to the minimum. The

administrative and judicial system was efficient in providing costless and

speedy justice to the people. The Wali Sahib describes the crimes

position and the role of State in the following words:

“We had capital punishment, in accordance with Shariat, if

murder was proved –beyond all doubt. I did not take any chances. If the

relatives of the murdered person, like his father, son or brother, did not

want to take the life of the culprit, he could compromise with blood

money. But that would rarely happen. Otherwise, in the presence of a

police office, a doctor, and the local magistrate, the relative would be

given a rifle, and he would shoot the murderer. There used to be, on the

average, 22 murders a year in Swat State –and half of those were in

Indus Kohistan…. (where) we always had difficulties collecting full



evidence and judging the evidence: they would generally try to embroil

many people, in the hope that they would be dismissed from service and

the aggrieved party could obtain their posts in the army; and for that

reason I never punished a man with a death sentence in Indus Kohistan –

not a single person. Elsewhere, I used to allow a maximum of two or

three murderers to be shot in a year. I wanted to be absolutely sure; and –

where there was a full evidence and they had nothing to hide –if out of

22 murders 3 were punished, that was enough. The rest of them were put

in prison for 7 years, 10 years or were fined heavily. And I am very

proud of two things; no innocent person has been shot; and no body has

been tortured in jails during my 20 year’s rule” 28.

We wind up this discussion with the remarks that the State of

Swat could ensure protection to the lives and properties of masses

through an efficient judiciary and law enforcement mechanism. The State

was famous for good governance and it enjoyed a general recognition

and confidence of the public at large. Although, there was no democracy

in the popular sense of the word, the precedence of mass consultancy

though Jarga system on important issues was always there. Obviously,

some political resistance did exist in Swat against the attitude and

policies of the rulers, as is common every where, the common man was

satisfied. There are always some strengths as well as limitations of socio-

political systems adopted by human beings. The rulers of Swat were

neither angels nor the Pious Caliphs. However, if we arrange the positive

and negative points on the same scale, the weight of positive points is

surely large in case of Swat. The rulers did not usurp the resources of

State, which were entirely at their disposal, nor did they build personal

estates abroad. They are still living among their people, who do



remember their contributions and give them full respect and honour even

when they are no more in power.

End Notes: 1 There is some difference in the dialects of northern and southern parts of NWFP. Where the Yousafzai call themselves Pukhtoon and their language as Pukhto, the Khattak will call Pushtoon and Pushto respectively. Same is the case with Peshawar and Pekhawar. 2 Sheikh Malli or Milli- this may be his title rather than true name.3 For instance, Bajaur was given to Tarklani, Dir to Malizai, Buner to Nulizai, Mardan- Swabi to Mandhar and Swat to Akuzai. For details, see Sirajuddin Swati (1970). 4 One of his famous books is ‘Makhzan’ to which the renowned Pushto poet Khushal Khan Khattak has referred by saying that two things/works are vivid in Swat, namely Daftar of Sheikh Malli and the Makhzan of Darveza. 5 This person was a descendant of Pir Baba and a companion of Sayyid Ahmed for a long time.6 Shah Sahib was the grandchild of Sayyid Akbar Shah, the man who was made king of Swat in 1849.7 For details, please see Barth (1995). It may be noted that the descendants of some renowned scholar and religious personality are called ‘Minagan’ in Pukhtoon society and they are given great respect. They may not be necessarily ‘Sayyids’. 8 In the early days of its establishment, there were five such Hakimis, later on the number of administrative divisions increased to about ten or eleven. For details, please refer to Chapter-4 9 Hakim was a position somewhat equivalent to the Deputy Commissioner in the settled area.10 Qazi courts were also there to decide cases of serious nature according to Shariah.11 See Barth (1995) pp 54.12 This head of spending out of Zakah revenue is recognized by the Holy Quran and Sunnah of the Prophet (SAW) and known as ‘Taleef al- Quloob’.13 It may be noted that current spending did not include the remunerations of servants paid in kind directly from Ushr collection at Tehsil level. Similarly, the revenues are net of those payments of Muajibat at source.14 The detailed budgetary positions of the central and provincial governments are given in the annexure.15 The advisory council was formally constituted (rather imposed) by the Govt. of Pakistan in 1954. The Govt. of Pakistan (Interim Constitution) Act -1954 for



Swat required 15 elected and 10 nominated members. However, the ruler could exercise absolute powers and was not answerable to the advisory council. Also there was no formalized budget before 1954.16 Sultan-i-Rome (2008) pp 233 with reference to Taj Muhammad Khan Zebsar, Uruj-e-Afghan Vol 2. 17 See Barth (1995) pp 112. 18 It was roughly the same time when Intermediate colleges were opened at the

six district headquarters of NWFP like Abbottabad, Mardan, Peshawar, Kohat, Bannu and D.I. Khan. Previously, there was only one institution for modern education, the Islamia College Peshawar established in 1932.

19 See Sultan-i-Rome (2008) pp 217 for further details.20 See Barth (1995) pp 113. It is interesting to note that the rule of punishment

in terms of stoppage of increments was adopted in the Education Department of NWFP, probably looking at the practice in Swat. However, the incentive of one month’s salary was never adopted.

21 See Barth (1995) pp 11422 See Sultan-i-Rome (2008) pp 225-27 for further details.23 Sultan-i-Rome (2008) pp 238 on the authority of Muhammad Asif Khan (the

Story of Swat)-the autobiography of Badshah Sahib –the Founder of the State.

24 See Sultan-i-Rome (2008) pp 240-41. 25 Sultan-i-Rome (2008) pp 241 on the authority of Reports by the Political Agent Malakand during 1958-68.26 Ref. Govt. of West Pakistan, S & GAD Deptt. Lahore notification No. 50-VII-9-74 dated 16-8-1969. The undemocratic Military regimes have always inflicted loss on the nation and brought little good.27 A famous Pushto proverb says: “Never to kick a donkey if it is walking smoothly with its load”. 28 See Barh (1995) pp 124.



Appendix Tables 1- 4

The Yousafzai State of SwatTable- A.1: Revenue Estimates for 1967-68 (Rupees)

Heads of Income Budget Estimates 1966-67



Income 160,02,300 175,29,665 174,09,000Tax Revenues 94,02,300 105,97,594 103,11,0001.LandRevenues (Ushr) 71,00,000 82,93,451 80,00,0002.Ushr from Ghee/Animals 2,43,270 2,42,559 2,42,0003. Export/Import Tax 18,60,000 18,60,500 18,60,0004. Income (Haysiat) Tax 1,10,000 1,12,054 1,12,0005.Excise duty (Opium/Hashish) 76,000 76,000 80,0006. Sales Tax Animals (Mal Mandi) 13,030 13,030 17,000Non-Tax Revenues 66,00,000 69,32,071 70,98,0007. Forests (sale of timber) 25,00,000 26,02,035 30,00,0008. Minerals (exports/sale) 10,00,000 10,03,000 10,00,0009. Income from Swat Hotel 1,00,000 1,39,289 1,39,00010. Rent of Govt. properties/houses 56,000 1,16,718 1,16,00011. Stamp duty 2,20,000 2,38,829 2,38,00012. Road Tax (Vehicles) 8,19,000 8,19,000 8,66,00013. Arms Licence, Tongas, Phone,

certificates and other fees 3,05,000 3,18,631 3,18,000

14. Fines 4,00,000 4,21,209 4,21,00015. Funding from Govt. of Pakistan 12,00,000 12,50,203 10,00,00016. Sale of Govt. Properties - 23,157 -Source: Derived from the record maintained at the Tribal Office, Directorate of Libraries and Archives, Govt. of NWFP.



The Yousafzai State of SwatTable- A.2: Budget Estimates for 1967-68 (Rupees)

Heads of Expenditure Budget Estimates 1966-67



Expenditure 157,39,000 198,08,774 173,33,000Current Expenditure 106,75,000 118,87,127 116,36,000General Administration 52,55,000 57,45,900 56,50,0001. Administration+ Privy Purse 18,00,000 19,27,577 20,00,0002. Advisory Council 55,000 49,053 50,0003. Armed Forces 25,00,000 27,40,505 26,00,0004. Police 9,00,000 10,28,765 10,00,000Social & Economic Services 43,80,000 47,91,269 48,88,0005. Education Department 28,00,000 31,11,979 32,00,0006. Public Health Department 14,00,000 14,67,281 15,00,0007. Irrigation department 10,000 10,600 10,0008. Information/Broadcasting 40,000 63,178 40,0009. Telephone Department 1,30,000 1,38,231 1,38,000Other Expenditure 10,40,000 13,49,958 10,98,00010. Magazine Factory 70,000 77,069 77,00011. Jails Department 1,20,000 1,21,490 1,21,00012. P.W.D./Govt. Vehicles 7,00,000 8,94,520 7,00,00013. Gratuity civil/military retired 1,50,000 2,56,879 2,00,000Development Expenditure 45,00,000 71,98,141 50,00,00014.Construction schools/hospitals 25,00,000 34,69,771 25,00,00015. Roads & Bridges 20,00,000 35,83,370 25,00,00016. Irrigation Channels - 1,45,000 -Transfers 5,64,000 7,23,506 6,97,00016. Muwajibat 94,000 96,469 96,00017. Malakana, Diyyat, Fin. Aid 70,000 1,01,049 1,01,00018. Royalties Payment/Forests 2,50,000 2,75,988 3,00,00019. Royalties payment/Minerals 1,00,000 1,00,000 1,00,00020. Donation to Pakistan Fund 50,000 1,50,000 1,00,000Saving/Deficit (+/-) + 2,63,300 - 22,79,109 + 76,000Financing: Reserve Fund Net deficit

- 15,00,000 7,79,109

-

Source: Derived from the record maintained at the Tribal Office, Directorate of Libraries and Archives, Govt. of NWFP, Peshawar with a note that since a sum of Rs. 15,00,000 exists in the treasury as reserve, the deficit in the revised budget can be easily handled



Government of PakistanTable- A.3: Revenue Budgets (Central) for 1966-67 and 1967-68 (Rs. Lakhs)Heads of Income 1966-67 1967-68 Heads of

Expenditure1966-67 1967-68

1.Customs 124,91 126,62 1. Direct demand on Revenues

5,30 5,83

2. Central excise 126,94 155,82 2. Debt Services 53,53 62,193.Sales Tax 36,33 22,52 3. Civil

Administration 46,08 49,30

4. Income & Corp Tax

32,99 26,81 4. Defence Services 229,35 218,65

5. Others 6,07 4,02 5. Civil Works/Roads

6,29 6,81

Total Principal Heads

327,24 335,79 6. Miscellaneous 12,12 12,04

6. Post & Telegraph(net)

7,79 8,70 7. Currency & Mint 0,96 1,12

7. Debt Services 65,88 74,53 8. Grants-in-Aid to Provinces

3,91 18,77

8. Civil Administration

14,14 13,61 9. Other including Dev. Exp

19,01 30,00

9. Currency and Mint

6,67 7,26 Total Expenditure 376,55 407,71

10. Miscellaneous

12,37 11,03 Surplus/Deficit 70,97 62,71

11. Defence Services

11,64 12,77

12. Others 1,79 6,73Total Revenue Receipts

447,52 470,42




Government of PakistanTable- A.4: Revenue Budgets (Provincial) for 1966-67 and 1967-68 (Rs. Lakhs)


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